Grenada providing incentives for oil and gas exploration

0

The Grenada government has successfully tabled legislation providing incentives for oil and gas exploration here.

Government said that the Hydrocarbon Exploration Incentive bill 2017, will help determine the existence of natural deposits of oil and gas as well as the quality, and quantity

“You bring in the rake, you bring in all the equipment you utilize but you take it out at the end of the day and the rake has to go back, should the person pay custom duties”? We are saying no,” said Leader of Government Business, Gregory Bowen, as he piloted the legislation.

gregory-bowen
Gregory Bowen

Bowen said investors who also have to bring in vehicles for work purposes “will get duty concession on” a maximum of six vehicles.

“If you want to bring in vehicles on the island because you want to take people out and you want to take goods and services from here …..you want to buy products from the firms in Grenada to drop it back on the Pier for a boat to take it to the rig, we say a maximum of six vehicles you will get a duty concessions on” said Bowen.

He said government will also be urging investors to ensure that nationals are employed on the rigs for the period of exploration.

Economic Development Minister, Oliver Joseph in supporting the bill, added “the good thing about the Bill is that it’s there for everyone to see.

“It’s not the investors going and meet with minister Bowen and working out a deal, it’s there in law, all other companies want to come to Grenada to explore they will know what is there… clear and simple in legislation. And this is the kind of approach I like and that is what I like about this Government, being transparent and open”.

Earlier this month, Prime Minister Dr. Keith Mitchell said that the search for oil in Grenadian waters is set to begin within months.

He said the Global Petroleum Group (GPG), which the government granted authorization to conduct a seismic survey on the island, has identified ‘the most prospective geographical features offering greatest exploration and economic potential.

“They have prepared all the engineering and logistical plans for the exploratory drilling campaign, engaged all the contractors, subcontractors and vendors necessary, and are on the verge of commencing the exploratory drilling campaign within the next month or two,” Prime Minister Mitchell said.

At present, Grenada does not produce any oil. However, if the GPG’s drilling campaign proves successful, it may result in outcomes that will have positive rippling effects across the Grenadian economy.

“Their achievements to date, represents the furthest any company conducting petroleum exploration in Grenada has ever reached—and the quest continues, with future prospects in sight,” Mitchell said.

CLICK HERE TO JOIN OUR WHATSAPP GROUP